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Is AI actually making businesses less productive?

Agent99

New COS research reveals almost a third of Australian employees do not feel AI is giving them more time, highlighting the importance of practical training, clearer expectations and smarter implementation

 

AI has been sold to Australian businesses as one of the fastest ways to lift productivity, but new research suggests the promise of time savings is not being felt equally across the workforce.

 

National research of over 1,000 office workers commissioned by COS (Complete Office Supplies), Australia’s largest family-owned workplace supplies business, found 52% of Australian employees say AI has given them more time at work.

 

However, three in 10 employees (30%) say they do not feel like they have more time, with 14% reporting no noticeable difference, 8% saying learning and checking AI outputs adds extra work, and 9% saying expectations have increased now that AI tools are available.

 

For COS Co-CEO Belinda Lyone, the findings highlight a practical challenge for businesses, particularly SMEs trying to improve productivity without simply adding more pressure to teams.

 

“AI can absolutely help people work faster and focus on higher-value tasks, but it is not a shortcut on its own. If a business introduces AI without the right training, expectations and workflow changes, it can quickly become another thing employees need to learn, check and manage. That is when a productivity tool risks becoming another layer of work.”

 

AI is helping, but not for everyone

The research found 21% of employees say AI helps them complete routine tasks faster, while 19% say it reduces time spent researching or drafting work. A further 12% say AI allows them to focus more on higher-value work.

 

However, the data also points to a more complicated reality inside Australian workplaces.

 

More than one in five employees (21%) agree they use AI only because their workplace expects them to, while 12% say they use AI but do not like it, viewing it as a means to keep up with their peers.

 

Lyone says this is where leaders should distinguish between AI adoption from genuine productivity improvement.

 

“There is a big difference between giving employees access to a tool and helping them use it well. At COS, we are investing heavily in AI training because we know people need confidence, context and clear guidance. You cannot assume that because a tool is available, it is automatically making work easier” she says.

 

The risk of adding another system

The findings come as Australian businesses continue to search for productivity gains while managing cost pressure, labour constraints and increasingly complex workplace systems.

 

COS research also found 56% of employees believe fewer systems would improve productivity because they spend too much time working out which one to use and how to use it.

 

Belinda Lyone says AI should not be treated as separate from this wider workplace friction.

 

“Businesses often introduce new systems with the right intent, but if they are not integrated properly, employees can end up switching between tools, duplicating tasks or spending more time checking work than they save,” she says.

 

“For SMEs especially, the opportunity is not to adopt AI for the sake of saying you are using AI. The opportunity is to identify where work is getting stuck and then use technology to remove that friction.”

 

How businesses can make AI work harder

 

Belinda Lyone says businesses looking to improve productivity through AI may benefit from focusing less on speed of adoption and more on practical implementation.

• Start with the problem, not the platform
  Identify the tasks, processes or bottlenecks that are genuinely slowing people down before introducing a new tool.
• Train people properly
  AI only delivers value when employees understand how to use it, when to use it and how to check outputs confidently.
• Set clear expectations
  Employees need to know whether AI is there to improve quality, save time, reduce repetitive work or support decision-making. Without clarity, new tools can increase pressure rather than reduce it.
• Build AI into existing workflows
  Technology should reduce steps, not create extra ones. This means considering whether AI is simplifying work or adding another system for employees to manage.
• Keep employees accountable
  AI can support faster work, but leaders still need clear quality standards, review processes and human judgement around the final output.

Belinda Lyone says the businesses that benefit most from AI will be those that treat it as an operational change, not just a software rollout.

 

“AI should help people do better work, not make them feel like they have to produce more simply because a new tool exists,” she says.

 

“Productivity comes from giving people the right tools, the right training and the right expectations. When those things are missing, even the best technology can create more pressure than progress.”

 

For more information on COS, visit: https://www.cos.net.au/

About us:

COS is Australia's largest family-owned and operated workplace and education supplies business, led by second-generation sisters, Co-CEOs Belinda and Amie Lyone. Founded in 1977 by the late Dominique Lyone, COS has grown to a national operation with over 700 staff and warehouses in every state and territory. Every day, COS delivers thousands of products to workplaces, schools and hospitals across Australia, helping to keep them healthy, safe and productive.

COS has achieved Net Zero Operations and 100% Renewable Electricity across all facilities nationwide in both 2024 and 2025. Each year, COS also donates 1% of annual revenue to the Lyone Foundation, supporting local Australian charities focused on human welfare. Since 2013, COS has contributed more than $26 million to the Foundation and helped more than 150 life-changing charities.

Contact details:

For further information, images or to request an interview with Belinda Lyone, contact:

Nicole Robertson, Agent99 PR at 02 9779 0999 or [email protected]